5 reasons business owners prefer instant virtual debit cards
Communication Team
Communication Team

May 17, 2022

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5 reasons business owners prefer instant virtual debit cards

In a 2021 study, Juniper Research predicted that virtual card spending would reach $6.8 trillion by 2026, up from $1.9 trillion in 2021.

At wamo, we are often asked, what does ‘instant virtual debit card’ even mean? And why would I want one for my business?

Instant online virtual debit cards are online versions of traditional debit cards that are linked to your bank account. These mobile payment solutions can be used anywhere and offer amazing innovative features that ensure security, risk mitigation and a check on the cash flow.

Here's the thing, when your business increases its operations, you need more buying capacity and your frequency of purchases automatically increases. This is where virtual debit cards can become the ultimate solution for your business spending. You can make as many purchases as you need without having to go through the hassle of getting a new physical debit card each time or worrying about overspending.

There are several other reasons why growing businesses prefer instant virtual debit cards, which we’ll explore below.

Related: What are virtual payment cards?

An instant virtual debit card controls overspending

Generally, employees use high-limit corporate credit cards for business expenses. But what if you want to limit their spending? Well, that's where instant virtual debit cards come in handy. You or your finance team load an employee or project’s virtual debit card by transferring money to it in the wamo app. And what is there is all that can be spent. Overspending isn’t possible and all spending is transparent: you can get reports and analytics of transactions, oversee all activity for every card and track all purchases in real-time from the dashboard. This means far less risk for your business while still empowering employees by delegating spending responsibility. For example, if your employee temporarily wants to buy new software for the company that costs €500, you can create an instant online virtual debit card and add €500 to it from your main wamo account. Once the software has been purchased, the card can simply be deleted.

Related: 7 best ways to manage your business finances

Vendors' power is diminished

Vendors with your credit card information tend to have the power to charge you whenever they want. This is a huge concern for many businesses, especially small businesses. With an instant online virtual prepaid debit card, the vendor only has access to the funds that have been authorised for the purchase- nothing more, nothing less. This gives you an extra layer of security and peace of mind. Smart companies use virtual cards to avoid the hassle of generating one-time use card numbers for every new vendor. Companies using wamo, for example, can create an unlimited number of virtual cards in seconds and load them with specific amounts. This ensures that your vendors would not make any unauthorised charges and only have access to the funds that you've allocated for them.

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Enables better cash flow management

When you use a physical debit or credit card, you are using your own money that is sitting in your bank account. With an instant online virtual debit card, you can load only the amount of money that you need for a specific purchase. This helps you manage your cash flow better because you are not tying up all your money in one place. Another advantage of using an instant virtual debit card is that it helps you to stay within your budget. When you use a physical debit or credit card, it is easy to overspend because you are not aware of how much money you have available. With an instant online virtual debit card, you can load only the amount of money that you need for a specific purchase. This way, you can avoid overspending and keep track of your spending easily. From your wamo app you can create sub-accounts and issue a virtual debit cards for them. This means that each sub-account has its own linked card which streamlines payments and accounting.

Reduces risk management and fraud

Companies with multiple employees, vendors and clients are at a higher risk for fraud and embezzlement. With an instant online virtual debit card, you can assign each employee, vendor, or client their own unique card number. This way, you can track and monitor all purchases easily. Plus, if there is any suspicious activity on a specific card, you can cancel it immediately to avoid any further fraudulent charges.

Enhances purchasing ability of employees

Dynamic companies with highly qualified employees need to be agile, which often means including them in your purchasing decisions too. Instant online virtual debit cards make it easy for employees to make work-related purchases quickly and easily, without having to wait for approval from you or another manager. For example: If you’re running a marketing agency, and your team is working on a project for a client that requires a certain marketing budget. An options would be to give each team member an instant virtual debit card loaded with the amount of money they need to set up their campaign. This way they can set up get started on projects immediately.

The benefits of an instant virtual debit card are one decision away

These cards are an instant upgrade from the physical cards we are all used to. With so many benefits, it is time for your business to make the switch to an instant online virtual debit card, if you have not done so already. Our powerful and easy-to-use instant online debit cards make it easy for businesses of all sizes to create and manage their spending with more efficiency and ease.

Get a business virtual card now

To learn more about virtual cards chat with us.

© wamo 2022, all rights reserved wamo & the wamo logo are trademarks and trade names of wamo technology Limited and may not be used or reproduced consent of the owner

wamo.io LTD incorporated and registered in the United Kingdom under the company registration number 12352849 and the operational office of which is at WeWork, 199 Bishopgate, London EC2M 3TY. wamo operates the wamo.io website and the app. wamo is not a bank, the current account is an e-money account. Issuance of Electronic Money and payment services is provided by PayrNet Limited. PayrNet holds an amount equivalent to the money in the wamo current accounts in a safeguarding account which gives the customers protection against insolvency. We are authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 (register reference 922901) for the issuing of electronic money. wamo is an EMD agent of PayrNet.

© wamo 2022, all rights reserved wamo & the wamo logo are trademarks and trade names of wamo technology Limited and may not be used or reproduced consent of the owner